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Project: MARTA Red Line Extension

Summary:

During the 1990s, MARTA extended just over two miles north of its existing Dunwoody station, opening the Sandy Springs and North Springs stations in late 2000, which together comprise the North Line (now Red Line) extension.

Characteristics and Setting:

Classification/Type
Line Extension
Transportation Mode
Heavy Rail
Average Annual Daily Traffic
16,827
Length (mi)
2.40
Economic Distress
0.96
Population Density (ppl/sq mi)
631
Population Growth Rate (%)
0.02
Employment Growth Rate (%)
0.04
Market Size
2,812,469
Airport Travel Distance (mi)
24.0000
Topography
5

Geography

Region
Southeast
State
GA
County
Fulton County
City
Sandy Springs
Urban/Class Level
Metro
Local Area
N/A
Impact Area
Within 3/4 miles of station(s)
Transportation System
Transit

Timing

Initial Study Date
1995
Post Construction Study Date
2012
Construction Start Date
1996
Construction End Date
2000
Months Duration
48

Costs

Project Year of Expenditure (YOE)
1999
Planned Cost (YOE $)
N/A
Actual Cost (YOE $)
463,180,000
Actual Cost (current $)
662,347,400

Pre/Post Conditions:

NOTE: All pre/post dollar values are in 2013$

Select a region to display the conditions for that region:

Local

Measure Pre project Post project Change % Change
Personal Income Per Capita 0 0 0 N/A
Economic Distress 0 0 0 N/A
Number of Jobs 103,669 95,445 -8,224 -0.08%
Business Sales (in $M's) 0 0 0 N/A
Tax Revenue (in $M's) 0 0 0 N/A
Population 53,430 69,362 15,932 0.30%
Property Value (median house value) 0 0 0 N/A
Density (ppl/sq mi) 2,250 2,921 671 0.30%

County(ies)

Measure Pre project Post project Change % Change
Personal Income Per Capita 32,524 63,134 30,610 0.94%
Economic Distress 0.96 1.12 0.16 0.17%
Number of Jobs 762,225 967,050 204,825 0.27%
Business Sales (in $M's) 0 0 0 N/A
Tax Revenue (in $M's) 0 0 0 N/A
Population 733,066 977,950 244,884 0.33%
Property Value (median house value) 113,800 229,900 116,100 1.02%
Density (ppl/sq mi) 1,391 1,856 465 0.33%

State

Measure Pre project Post project Change % Change
Personal Income Per Capita 22,136 37,254 15,118 0.68%
Economic Distress 0.86 1.14 0.28 0.33%
Number of Jobs 4,188,040 5,404,411 1,216,371 0.29%
Business Sales (in $M's) 578,080 933,922 355,842 0.62%
Tax Revenue (in $M's) 9,487 16,715 7,228 0.76%
Population 7,328,413 9,919,000 2,590,587 0.35%
Property Value (median house value) 111,200 142,300 31,100 0.28%
Density (ppl/sq mi) 127 171 44 0.35%

Within 3/4 miles of station(s) Impacts

NOTE: All impact dollar values are in 2013$

Measure Direct Indirect Total
Jobs 750.00 0.00 0.00
Income (in $M's) 74.02 0.00 0.00
Output (in $M's) 135.49 0.00 0.00

Case Location:

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Narrative:

MARTA Red Line Extension

1.0 Synopsis

MARTA’s heavy rail extension – with the addition of Sandy Springs and North stations – through the heart of Perimeter Center the Atlanta region’s largest single employment center, accelerated a growth trajectory that has been ongoing for several years. This case study documents 750 new office jobs in 2013 in walking distance of the Sandy Spring station. It should be noted that since 2000, when the two new stations became operational, broader the development in the locale has been observed, but not necessarily within walking distance of either station.

During the 1990s, Metropolitan Atlanta Rapid Transit Authority (MARTA) extended its heavy rail transit line 2.3 miles north of the existing Dunwoody station, opening the Sandy Springs and North Springs stations in December 2000. Together, these two stations comprise the North Line (now referred to as the Red Line) extension, a project that allows travelers from Atlanta and its northern suburbs to access Perimeter Center, the region’s largest single employment center. MARTA’s extension has helped attract large employers to the area surrounding the Sandy Springs station, spurring the creation of a vibrant retail and restaurant scene. According to Katy McNulty, who was quoted by Perimeter Community Improvement Districts, “There are a lot of urban advantages to living in Perimeter [Center]—upscale shopping, multi-cultural dining and being able to live close to work. With MARTA nearby, I can easily get to...entertainment locations.” 

2.0 Background

2.1 Location & Transportation Connections

MARTA’s Red Line extension is located in north Fulton County, approximately halfway between Atlanta and Alpharetta, a suburb at the northern edge of the metropolitan region. At the intersection of Georgia 400 (a tolled state highway) and Interstate 285 (referred to as the “Perimeter”), the extension provides easy access to and from the city via park-and-ride lots directly off the highways. According to one person interviewed for this case study, for companies, the MARTA stations are centrally located between a young workforce in Atlanta and executives living in Alpharetta and other northern suburbs. In addition, this same person interviewed for this case study describes MARTA’s connection to Hartsfield-Jackson Atlanta International Airport, currently the world’s busiest airport by passengers enplaned and deplaned, as “a very easy transfer,” particularly because the Red Line travels directly the airports domestic terminal. According to Google Maps, the travel time (via transit) from North Springs, the Red Line’s northernmost station, to Hartsfield-Jackson (a distance of 30 miles) is approximately 45 minutes during the peak morning period. 

2.2 Community Character & Project Context

From 1995 to 2012, the population of Sandy Springs station neighborhood (zip-code based) grew by 29.8 percent, from approximately 54,400 to 69,400. From 1998 to 2012—the earliest and latest years for which data are available—the number of jobs in the neighborhood contracted by 7.9 percent, from 103,670 to 95,445.

In extending the Red Line, MARTA intentionally shifted the route less than one mile east of Georgia 400 so that it would pass through Perimeter Center, a large commercial area anchored by the Perimeter Mall. This real estate “submarket”—which straddles two counties and is roughly bounded by the Perimeter, Chattahoochee River, and City of Dunwoody—has more square footage of tenant-occupied office space (22.6 million square feet) than downtown Atlanta. Perimeter Center is also the third-largest retail market in the Atlanta metro, with nearly 11 million square feet of tracked inventory in the second quarter of 2015. 

3.0 Project Description & Motives

As a way to combat highway congestion during the 1990s, MARTA focused on its “link to community development,” partnering in 1999 with BellSouth (now AT&T) to develop a large transit-anchored town center in Atlanta’s Lindbergh neighborhood. During this time, MARTA continued to extend north, opening the Sandy Springs and North Springs stations in late 2000, which together comprise the Red Line extension. The extension, which is slightly over two miles long, connects the cities of Dunwoody (DeKalb County) and Sandy Springs (Fulton County). According to the U.S. Federal Transit Administration, the project cost slightly over $463 million, $370.5 million of which was funded by its New Starts program with the remainder funded by a regional sales tax (year of expenditure dollars). 

4.0 Project Impacts

4.1 Transportation Impacts
4.2 Demographic, Economic & Land Use Impacts

 Although neither ridership growth nor real estate development occured as fast as expected, following the economic recovery, MARTA’s presence in Perimeter Center and Sandy Springs seems to be an important factor in attracting new jobs to the metro area. In 2013, AirWatch, mobile technology company, announced that it would relocate to the area, bringing with it an estimated 1,000 jobs. Today, AirWatch occupies a building within walking distance of the Sandy Springs station where, according to the Hoovers business database, 750 employees work.

In February 2015, Mercedes-Benz USA announced that it will build its new headquarters—which is being relocated from New Jersey—on a 12-acre site directly across Georgia 400 (and less than one mile) from the Sandy Springs station. According to The Atlanta Journal-Constitution, CEO Joe Cannon cited the company’s desire to tap into “Millennial talent who want to live in-town, while also being close to executive-level housing in Buckhead and the northern Atlanta suburbs” as one reason for the site location decision. As part of the move, Mercedes plans to relocate or create 800 to 1,000 jobs. One person interviewed believes the presence of the nearby MARTA station had a strong influence on the company’s decision to locate in Sandy Springs instead of other locations in the Atlanta metro that are less accessible by transit.

State Farm is also expanding its already significant presence in the Atlanta region. In 2014, the insurance company announced that it would lease over half a million square feet of office space directly across from the Dunwoody station in Perimeter Center. Although, this station was not part of the extension and the building is not new development, this provides a strong example of the growing priority placed on locations near transit. Dubbed the “Park Center Hub,” the new development will provide a direct connection to MARTA trains, helping realize State Farm’s goal of creating a “workplace of the future” with “...housing, public transportation, shopping and entertainment all within easy access.” State Farm plans to add 3,000 jobs to the Perimeter Center campus over the next ten years. One person interviewed believes owners of existing buildings in this area are “looking to redevelop in order to better orient” their properties toward the Sandy Springs station, in particular, which follows Dunwoody when traveling north. 

5.0 Non-Transportation Factors

 According to some, Perimeter Center’s growth can be attributed to both an increase in population throughout the Atlanta region and “permissive” zoning that has enabled and incentivized developers to build millions of square feet of retail and office space. In addition, people interviewed for this case study emphasize Perimeter Center’s advantageous location at the intersection of Georgia 400 and Interstate 285, and halfway between Atlanta and Alpharetta, as an important growth factor. 

6.0 Resources

6.1 Citations

 “ACI Annual World Airport Traffic Report,” Airports Council International, accessed October 15, 2015, http://www.aci.aero/Data-Centre/Monthly-Traffic-Data/Passenger-Summary/Year-to-date

“Atlanta Office,” State Farm, accessed October 10, 2015, https://www.statefarm.com/careers/become-an-employee/office-locations/atlanta-office

Atlanta Regional Commission, 2014 Transportation Fact Book (Atlanta, GA: Atlanta Regional Commission, 2014), accessed October 21, 2015, http://documents.atlantaregional.com/transportation/TFB_2014_v17.pdf

Cushman & Wakefield (a), MarketBeat Office Snapshot: Atlanta, GA (Atlanta, GA: Cushman & Wakefield, 2015), accessed October 15, 2015, http://www.cushmanwakefield.com/~/media/marketbeat/2015/07/Atlanta_Americas_MarketBeat_Office_Q22015.pdf

John Bell, July 19, 2015, “Atlanta, Georgia: Opening of the North Line Extension,” personal website, accessed October 21, 2015, https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CB4QFjAAahUKEwjsjNT17dPIAhVIHT4KHbEYA1A&url=http%3A%2F%2Fwww.jtbell.net%2Ftransit%2FAtlanta%2FMARTA%2Ftrip-report-200012%2F&usg=AFQjCNF3znZq_nDqQfw_uB6ukvk-nXLTCw&sig2=xTOpKBQXh2DuPz5UF-0zNg

Greg Bluestein and J. Scott Trubey, February 3, 2015, “Mercedes unveils Sandy Springs HQ location,” The Atlanta Journal-Constitution, accessed October 9, 2015, http://www.ajc.com/news/business/mercedes-unveils-sandy-springs-hq-location/nj32y/

“MARTA’s Past and Future,” Metropolitan Atlanta Rapid Transit Authority (MARTA), accessed October 9, 2015, http://www.itsmarta.com/marta-past-and-future.aspx

“Newell Rubbermaid Locations,” Newell Rubbermaid, accessed October 9, 2015, http://www.newellrubbermaid.com/Pages/ContactUs.asp

Joe Earle, February 21, 2014, “Perimeter market becoming ‘economic hub’ of metro Atlanta region,” Reporter Newspapers, accessed October 10, 2015, http://www.reporternewspapers.net/2014/02/21/perimeter-market-becoming-economic-hub-metro-atlanta-region/

“RFPs,” Perimeter Community Development Districts, accessed October 15, 2015, http://www.perimetercid.org/rfps.html

“Select Recent Major Corporate Decisions,” Metro Atlanta Chamber, accessed October 9, 2015, http://www.metroatlantachamber.com/business/relocation/companies

Scott Trubey, January 29, 2015, “New boom revives traffic issues for Perimeter area,” The Atlanta-Journal Constitution, accessed October 15, 2015, http://www.myajc.com/news/business/new-boom-also-brings-issues-for-perimeter-area/njzQ8/

 

“UPS Corporate and Regional Headquarters,” United Parcel Service of America, Inc., accessed October 9, 2015, http://www.ups.com/content/us/en/contact/corporate.html

Douglas Sams, February 14, 2014, “State Farm, KDC, announce massive project,” Atlanta Business Chronicle, accessed October 10, 2015, http://www.bizjournals.com/atlanta/real_talk/2014/02/state-farm-kdc-announce-massive.html?page=all

U.S. Federal Transit Administration (a), 2003, “North Springs (North Line Extension): Atlanta, Georgia,” accessed October 21, 2015, http://www.fta.dot.gov/documents/Atlanta1AA.doc

U.S. Federal Transit Administration (b), 2013, FTA National Transit Database, accessed October 21, 2015 via the American Public Transportation Association, http://www.apta.com/resources/statistics/Pages/ridershipreport.aspx

Federal Transit Administration. National Transit Database. Monthly Data April 2015. http://www.ntdprogram.gov/ntdprogram/pubs/MonthlyData/April%202015%20Raw%20Database.xls 

6.2 Interviews

Atlanta Regional Commission

Metropolitan Atlanta Rapid Transit Authority

Footnotes

Attachments:

No attachments were submitted.